The Thiruvananthapuram Corporation has failed to collect Rs 41.51 lakh from the Defence Service Estimates to make good the exemption on Profession Tax given to the employees of the Southern Air Command (SAC) headquarters at Akkulam, the Comptroller and Auditor General of India (CAG) has found.
The finding has been published in the CAG Report on Local Self-Government Institutions for the year ended March 2012 published this week.
Section 3 of the Municipal Taxation Act, 1981, provides for exemption of Municipal or Cantonment Taxes on salaries of people subject to the Army, Navy and Air Force Acts. But the Centre has to compensate the revenue lost to the municipality concerned from the Defence Services Estimates.
Where the Corporation failed was in making sure that it was reimbursed adequately from the Defence Services Estimates.
‘’As per the details obtained from Unit Account Section, HQ, SAC (U) AF, Akkulam, there were 467 employees working in Southern Air Command Headquarters, Thiruvananthapuram. Though Profession Tax is calculated based on the gross salary of the employees, the Southern Air Command Headquarters furnished details of net salary to audit. Even based on the net salary drawn by the employees, the amount to be got reimbursed from Defence Services Estimates for the period from 2007-08 to 2011-2012 worked out to Rs 41.51 lakh,’’ the CAG report noted.
The report also adds that the Corporation had informed the CAG that steps were taken in February this year to collect the amount from the Defence Service Estimates.